This article will detail what is involved with wage increases in Tanda ahead of 1 July 2023 and answer some frequently asked questions.
What is the wage increase for 2023?
On Friday 2 June 2023 the Fair Work Commission (FWC) handed down the Annual Wage Review 2022–23 decision.
The FWC has announced a 5.75% increase to all modern award minimum wages.
When do the new rates apply from?
For 2023/24 minimum wage increases, the effective date will be the first full pay period that starts on or after 1 July 2023.
Tanda will automatically update all Managed Award Template base rates and allowances to reflect the increase. The increase will apply from the start of your first full pay period after the effective date.
For further information on effective dates, see the Get set for a minimum wage increase article from the Fair Work Ombudsman.
Which Tanda Managed Award Templates are affected by the 2023 wage increases?
All Tanda Managed Award Templates will receive the 5.75% increase.
What about the wage increases in the Aged Care Industry?
On Monday 3 March 2023, the FWC handed down a Decision to increase the minimum wages of certain employees working in the aged care sector by 15%.
The 15% wage increase applies to certain employees covered by the below modern awards:
Aged Care Award
Social, Community, Home Care and Disability Services Industry (SCHADS) Award (Home Care stream only)
This 15% increase takes effect from the start of the eligible employee's first full pay period commencing on or after 30 June 2023.
All three of these awards are Tanda Managed Award Templates.
Tanda will automatically update these three Managed Award Templates to reflect this increase for the first full pay period commencing on or after 30 June 2023.
To faciliate this increase the FWC implemented new classifications under each of the above listed Awards.
If you have employees whom these new classifications will be applicable, please see the below article for details on how to update the employee profile with one of the new classifications in Tanda:
The 5.75% minimum wage increase will also apply to all employees under the above-listed aged care industry awards. The eligible employees receiving the 15% increase will also receive the 5.75% increase from the first pay period commencing on or after 30 June 2023 in Tanda.
How do wage increases work in Tanda?
For employees covered under a Tanda Managed Award Template, Tanda manages and automatically updates minimum wage increases.
No action is required to receive the minimum wage increase in your Managed Award Template. The update will occur automatically at the beginning of your first full pay period after the new rates and allowances are effective.
Depending on the payroll software you use, you may need to update base hourly rates manually in your payroll software to also reflect the increase.
Please see the below for further details on actions required within payroll:
How does Tanda know what the correct rates are?
The minimum wage review for the 2022-23 decision has now been published by the FWC confirming a minimum wage increase of 5.75%.
Over the coming weeks, the FWC will also publish draft determinations and orders on how the increase impacts each award. The FWC will then update the pay rates accordingly.
Tanda first performs our own calculations to ensure updated rates are available to all users in time for the effective date.
Once the new Pay Guides are issued by the Fair Work Ombudsman, our Compliance Team perform a final validation against the Fair Work Ombudsman Pay Guides. This is to confirm that our methods of rounding match the rounding methods of the Ombudsman.
It's not uncommon to find disagreement between industry body pay guides, and those published by the Ombudsman (usually of 1 cent).
Tanda has called upon the Fair Work Commission and the Fair Work Ombudsman to clarify a rounding standard for these calculations to remove any ambiguity.
Updating rates for Xero and MYOB AccountRight Live
For Xero and MYOB AccountRight Live clients, base rates update automatically through Tanda's integration with these providers. The rates will be updated upon export of the first finalised pay period after the new rates have come into effect.
For the 2023/24 rate increases, this will be the first full pay period commencing on or after 1 July 2023.
No further action is required, however, you should confirm that the updates have occurred as expected prior to finalising your first pay run after the change.
Updating rates for all other payroll systems
At the beginning of the first full pay period commencing on or after 1 July 2023, follow the below steps to match the rates in your payroll software to the rates in Tanda:
Generate a report of the new base hourly rates in Tanda. To do this navigate to Compliance > Award Template > click Manage next to the applicable modern award:
In the settings for each Manage Award Template, you will find a payroll configuration report button. For example, please see the below button for the integration with CloudPayroll:
Once the button is clicked, the below page will display where the list of current base rates and allowances can be printed:
Then update the base hourly rates in your payroll software to match the new base hourly rates contained in the Payroll Configuration Report.
How to check the new rates have applied correctly
Navigate to Compliance > click the + icon next to Award Template > then all enabled managed templates will display > look at the Last Updated column to see when updates were last made to your Managed Award Template/s:
You can also check the base rate in the Payroll Export Summary of a timesheet that begins in the first full pay period following the effective date:
If you have any questions on rate changes, reach out via the chat window to your right in this article or to firstname.lastname@example.org.